Microsoft named a Making Tax Digital software provider

Making Tax Digital (MTD) is HMRC’s transformational approach to taxation in the UK. The first change is coming in 2019 and will affect every organisation from your processes, to how your systems are set up to record and report tax.

Since MTD’s inception HMRC has been working with leading ERP and Accounting providers including Microsoft to collaborate on the solution. This new approach will involve a portal where organisations will manage all of their taxes. From 2019, organisations will have to submit their VAT records through the portal.

Microsoft and Making Tax Digital

Microsoft has been named as one of the providers developing a complaint solution. Dynamics 365 Business Central and Dynamics NAV have been identified on the HMRC website as being compliant. The details haven’t been released yet but it should be a simple command to submit a VAT report, with Dynamics connecting directly to the new HMRC portal.

Microsoft is committed to launching Making Tax Digital changes for these products. This comes as no surprise to us as Dynamics NAV and Business Central are positioned towards the accountancy market, so we expect Microsoft to lead with this offering. Microsoft has not confirmed when the updates will be ready, but we expect it will be Q1 2019.

What about other versions of Microsoft Dynamics?

We are still waiting for update information regarding Dynamics 365 for Finance and Operations, Dynamics AX 2012 R3 and Dynamics GP 2018.

HMRC has now publicly released its API which will speed up development as it allows developers and providers to test solutions and get ready for April 2019, we expect more information from Microsoft by the end of 2018.